To the surprise of absolutely no one, this reminds me of something.*
From the South China Morning Post, February 27:
Geopolitical tensions and Donald Trump’s tariff threats have fuelled a gold price surge, leading many Asian investors to sell off
....MUCH MOREAsian investors have paused from purchasing gold and begun pawning family heirlooms and stashed away holdings to cash in on record-high prices, industry executives say, triggered by US President Donald Trump’s new trade tariffs and swirling geopolitical tensions.
Gold has long been viewed as a safe haven whose value tends to rise in times of uncertainty. Expectations that the US Federal Reserve will slow its cycle of interest rate increases have added extra shine to the metal, which has historically moved inversely to the dollar.
“We are definitely seeing some opportunistic sellers taking profits off the table and the structured investors like family offices are sitting on the fence and waiting for more clarity where the prices are going to go,” said Padraig Seif, founding partner of Hong Kong-based Precious Metals Asia.
Spot gold prices rose to a record high of US$2,936 an ounce on February 20 and on Thursday were hovering close to that level at US$2,895 an ounce. The metal’s price had risen by about 5 per cent since Trump assumed office in late January, creating uncertainty about whether the rally had peaked, analysts said....
*January 28, 2008:
Gold loses its shine as high price hits Indian demand
This is a major low-I.Q. indicator.
Last year we had a post, EU Emission Caps, Kyoto and Three Ancient Civilizations, with this quote:
...There is no perfect answer but Kyoto wasn't even close.The Europeans thought they were gaming the "Cap" by backdating the start date.
The Americans thought they were gaming the treaty by insisting on "Trade".The Indians and Chinese said "Sure, send us the money".
The Westerners thought they would out-negotiate people who've been negotiating for 5000 years.
As a side note, in December 1979, as silver was making its historic run, an old Jewish trader told me he was lightening up on Ag.
When I asked why he said "I hear the Indian ladies are taking their bracelets off and they've been trading it longer than I have".....
